PrefBlog

Issue Comments

PWF.PR.Z Firm On Good Volume

Power Financial Corporation has announced:

the closing of an offering of 10,000,000 5.15% Non-Cumulative First Preferred Shares, Series V (the “Series V Shares”) priced at $25.00 per share for gross proceeds of $250 million.

The issue was bought by an underwriting syndicate co-led by BMO Capital Markets, RBC Capital Markets, Scotiabank and TD Securities Inc.

The Series V Shares will be listed and posted for trading on the Toronto Stock Exchange under the symbol “PWF.PR.Z”. The net proceeds from the issue will be used to supplement Power Financial’s financial resources and for general corporate purposes.

PWF.PR.Z is a Straight Perpetual, 5.15%, announced 2017-5-16. It will be tracked by HIMIPref™ and has been assigned to the PerpetualPremium subindex.

The issue traded 755,121 shares today in a range of 24.96-05 before closing at 25.03-06. Vital statistics are:

PWF.PR.Z

Perpetual-Premium

YTW SCENARIO
Maturity Type : Limit Maturity
Maturity Date : 2047-05-26
Maturity Price : 24.64
Evaluated at bid price : 25.03
Bid-YTW : 5.15 %

Implied Volatility for Straights analysis shows a very high level of implied volatility – but this is not surprising when so many of the issues are trading significantly above their call price.

Click for Big

New Issues

New Issue: ECN FixedReset 6.25%+519M625

ECN Capital Corp. has announced:

that it has entered into an agreement with a syndicate of underwriters led by BMO Capital Markets, CIBC Capital Markets, National Bank Financial Inc., RBC Capital Markets and TD Securities Inc. The underwriters have agreed to buy 4,000,000 Cumulative 5-Year Minimum Rate Reset Preferred Shares, Series C (the “Series C Preferred Shares”) at a price of $25.00 per share for aggregate gross proceeds of $100,000,000. The net proceeds are expected to be used to originate and finance, directly and indirectly, finance assets, to fund future acquisitions and for general corporate purposes.
ECN Capital has granted the underwriters an option to purchase at the offering price up to an additional 1,000,000 Series C Preferred Shares exercisable, in whole or in part, at any time up to 48 hours prior to closing of the offering. Should the option be fully exercised, the total gross proceeds of the Series C Preferred Share offering will be $125,000,000.

The Series C Preferred Shares will be issued to the public at a price of $25.00 per share and holders will be entitled to receive fixed cumulative preferential cash dividends, payable by quarterly installments for an initial period of five years, as and when declared by the Board of Directors of the Corporation, at a rate of $1.5625 per share per annum, to yield 6.25% annually. Thereafter, the dividend rate will reset every five years to the sum of the then current 5-Year Government of Canada Bond yield and 5.19%, provided that, in any event, such sum shall not be less than 6.25%. On June 30, 2022, and on June 30 of every fifth year thereafter, the Corporation may redeem the Series C Preferred Shares in whole or in part at par.

Holders will have the right to elect to convert all or any of their Series C Preferred Shares into an equal number of Cumulative Floating Rate Preferred Shares, Series D (the “Series D Preferred Shares”) on June 30, 2022, and on June 30 of every fifth year thereafter. Holders of the Series D Preferred Shares will be entitled to receive quarterly floating rate cumulative preferential cash dividends, as and when declared by the Board of Directors of the Corporation, equal to the sum of the then current 3-month Government of Canada Treasury Bill yield and 5.19%. On June 30, 2027 and on June 30, of every fifth year thereafter (a “Series D Redemption Date”), the Corporation may redeem the Series D Preferred Shares in whole or in part at par. On any other date that is not a Series D Redemption Date after June 30, 2022, the Corporation may redeem the Series D Preferred Shares in whole or in part by the payment of $25.50 for each share to be redeemed.

The offering is being made only in the provinces of Canada by means of a prospectus supplement to the Corporation’s base shelf prospectus. The closing date of the offering is expected to be on or about May 25, 2017.

DBRS has assigned a Pfd-3(low) rating to the issue:

The rating reflects the Company’s solid franchise as a leading commercial lender and lessor in North America with strong origination platforms and sound risk management across multiple asset classes. The rating also considers the solid earnings generation derived from the franchise, producing more than sufficient pre-provision earnings to absorb the cost of credit with a solid cushion to absorb potentially higher losses that would be expected through the cycle, as well as unexpected losses. Funding is appropriate and aligned with the asset base, while leverage is considered low compared to peers. The Company’s reliance on secured forms of wholesale funding and execution risks associated with the Company’s evolving strategy to become more “asset-lite”, as well as the potential for entry into new business activities currently constrain the ratings.

Market Action

May PrefLetter Released!

The May, 2017, edition of PrefLetter has been released and is now available for purchase as the “Previous edition”. Those who subscribe for a full year receive the “Previous edition” as a bonus.

PrefLetter may now be purchased by all Canadian residents.

Until further notice, the “Previous Edition” will refer to the May, 2017, issue, while the “Next Edition” will be the June, 2017, issue, scheduled to be prepared as of the June 9 and eMailed to subscribers prior to market-opening on June 12.

PrefLetter is intended for long term investors seeking issues to buy-and-hold. At least one recommendation from each of the major preferred share sectors is included and discussed.

Note: My verbosity has grown by such leaps and bounds that it is no longer possible to deliver PrefLetter as an eMail attachment – it’s just too big for my software! Instead, I have sent passwords – click on the link in your eMail and your copy will download.

Note: The PrefLetter website has a Subscriber Download Feature. If you have not received your copy, try it!

Note: PrefLetter eMails sometimes runs afoul of spam filters. If you have not received your copy within fifteen minutes of a release notice such as this one, please double check your (company’s) spam filtering policy and your spam repository – there are some hints in the post Sympatico Spam Filters out of Control. If it’s not there, contact me and I’ll get you your copy … somehow!

Note: There have been scattered complaints regarding inability to open PrefLetter in Acrobat Reader, despite my practice of including myself on the subscription list and immediately checking the copy received. I have had the occasional difficulty reading US Government documents, which I was able to resolve by downloading and installing the latest version of Adobe Reader. Also, note that so far, all complaints have been from users of Yahoo Mail. Try saving it to disk first, before attempting to open it.

Note: There have been other scattered complaints that double-clicking on the links in the “PrefLetter Download” email results in a message that the password has already been used. I have been able to reproduce this problem in my own eMail software … the problem is double-clicking. What happens is the first click opens the link and the second click finds that the password has already been used and refuses to work properly. So the moral of the story is: Don’t be a dick! Single Click!

Note: Assiduous Reader DG informs me:

In case you have any other Apple users: you need to install a free App from the apple store called “FileApp”. It comes with it’s own tutorial and allows you to download and save a PDF file.

However, Assiduous Reader Adrian informs me in the comments to the January 2015 release:

Some nitpicking for DG:
FileApp costs $1.19 in the Apple Store.

But Adrian2 now advises:

Well, as of now, FileApp is free (again?).

So cross your fingers!

Issue Comments

BNS.PR.O Redeemed

The Bank of Nova Scotia announced (on March 10):

that it intends to exercise its right to redeem all outstanding Non-cumulative Preferred Shares Series 17 of Scotiabank (the “Series 17 Shares”) on April 26, 2017, at a price equal to $25.00 per share, together with all declared and unpaid dividends. Formal notice will be issued to shareholders in accordance with the share conditions.

The redemption has been approved by the Office of the Superintendent of Financial Institutions and will be financed out of the general funds of Scotiabank.

On February 28, 2017, the Board of Directors of Scotiabank announced a quarterly dividend of $0.350000 per Series 17 Share. This will be the final dividend on the Series 17 Shares and will be paid in the usual manner on April 26, 2017, to shareholders of record at the close of business on April 4, 2017, as previously announced.

BNS.PR.O was a Straight Perpetual paying 5.60% which commenced trading 2008-1-31 after being announced 2008-1-17. It has been analyzed as a DeemedRetractible since OSFI’s announcement of the NVCC rules for banks.

New Issues

New Issue: IFC Straight Perpetual 5.20%

Intact Financial Corporation has announced:

that it has entered into an agreement with a syndicate of underwriters led by CIBC Capital Markets together with BMO Capital Markets, National Bank Financial and TD Securities Inc. pursuant to which the underwriters have agreed to purchase, on a bought deal basis, 5,000,000 Non-Cumulative Class A Shares, Series 5 (the “Series 5 Shares”) from Intact for sale to the public at a price of $25.00 per Series 5 Share, representing aggregate gross proceeds of $125 million.

Intact has granted the underwriters an underwriters’ option to purchase up to an additional 1,000,000 Series 5 Shares at the same offering price. Should the underwriters’ option be fully exercised, the total gross proceeds of the Series 5 Shares offering will be $150 million.

The Series 5 Shares will yield 5.20% per annum, payable quarterly, as and when declared by the Board of Directors of the Company. The Series 5 Shares will not be redeemable prior to June 30, 2022. On and after June 30, 2022, Intact may, on not less than 30 nor more than 60 days’ notice, redeem for cash the Series 5 Shares in whole or in part, at the Company’s option, at $26.00 per share if redeemed on or after June 30, 2022 and prior to June 30, 2023; $25.75 per share if redeemed on or after June 30, 2023 and prior to June 30, 2024; $25.50 per share if redeemed on or after June 30, 2024 and prior to June 30, 2025; $25.25 per share if redeemed on or after June 30, 2025 and prior to June 30, 2026; and $25.00 per share if redeemed on or after June 30, 2026, in each case together with all declared and unpaid dividends up to but excluding the date of redemption.

The Series 5 Share offering is expected to close on May 24, 2017. The net proceeds will be used to partially fund the previously announced acquisition of OneBeacon Insurance Group, Ltd. If the acquisition does not close, the net proceeds will be used for general corporate purposes.

They later announced:

that due to strong demand, the underwriters have exercised their option to purchase an additional 1,000,000 Non-Cumulative Class A Shares, Series 5 (the “Series 5 Shares”), which increases the size of the previously announced offering to 6,000,000 Series 5 Shares in aggregate, to be offered on a bought deal basis to a syndicate of underwriters led by CIBC Capital Markets together with BMO Capital Markets, National Bank Financial and TD Securities Inc. The Series 5 Shares will be issued at a price of $25.00 per Series 5 Share, representing aggregate gross proceeds of $150 million. The Series 5 Shares will yield 5.20% per annum. The Series 5 Share offering is expected to close on May 24, 2017.

Intact recently raised $754-million to fund its purchase of OneBeacon Insurance Group, Ltd..

As this issue is not NVCC compliant, it will be analyzed as a DeemedRetractible. Note, however, that this carries more uncertainty than it does with most other insurers because Intact is a P&C insurer, not a life company.

Issue Comments

ENB.PR.B : Convert or Hold?

It will be recalled that ENB.PR.B will reset to 3.415% effective June 1.

Holders of ENB.PR.B have the option to convert to FloatingResets, which will pay 3-month bills plus 240bp on the par value of $25.00, reset quarterly. The deadline for notifying the company of the intent to convert is 5:00 p.m. (Toronto time) on May 17, 2017; but note that this is a company deadline and that brokers will generally set their deadlines a day or two in advance, so there’s not much time to lose if you’re planning to convert! However, if you miss the brokerage deadline they’ll probably do it on a ‘best efforts’ basis if you grovel in a sufficiently entertaining fashion. The ticker for the new FloatingReset, if it is issued, is not yet known.

ENB.PR.B is a FixedReset, 4.00%+240, that commenced trading 2011-9-30 after being announced 2011-9-21.

The most logical way to analyze the question of whether or not to convert is through the theory of Preferred Pairs, for which a calculator is available. Briefly, a Strong Pair is defined as a pair of securities that can be interconverted in the future (e.g., ENB.PR.B and the FloatingReset that will exist if enough holders convert). Since they will be interconvertible on this future date, it may be assumed that they will be priced identically on this date (if they aren’t then holders will simply convert en masse to the higher-priced issue). And since they will be priced identically on a given date in the future, any current difference in price must be offset by expectations of an equal and opposite value of dividends to be received in the interim. And since the dividend rate on one element of the pair is both fixed and known, the implied average rate of the other, floating rate, instrument can be determined. Finally, we say, we may compare these average rates and take a view regarding the actual future course of that rate relative to the implied rate, which will provide us with guidance on which element of the pair is likely to outperform the other until the next interconversion date, at which time the process will be repeated.

We can show the break-even rates for each FixedReset / FloatingReset Strong Pair graphically by plotting the implied average 3-month bill rate against the next Exchange Date (which is the date to which the average will be calculated).

Click for Big

The market appears to have a distaste at the moment for floating rate product; most of the implied rates until the next interconversion are lower than the current 3-month bill rate and the averages for investment-grade and junk issues are both well below current market rates, at +0.02% and -0.15%, respectively! Whatever might be the result of the next few Bank of Canada overnight rate decisions, I suggest that it is unlikely that the average rate over the next five years will be lower than current – but if you disagree, of course, you may interpret the data any way you like.

Since credit quality of each element of the pair is equal to the other element, it should not make any difference whether the pair examined is investment-grade or junk, although we might expect greater variation of implied rates between junk issues on grounds of lower liquidity, and this is just what we see.

If we plug in the current bid price of the ENB.PR.B FixedReset, we may construct the following table showing consistent prices for its soon-to-be-issued FloatingReset counterpart given a variety of Implied Breakeven yields consistent with issues currently trading:

Estimate of FloatingReset (received in exchange for ENB.PR.B) Trading Price In Current Conditions
			Assumed FloatingReset Price if Implied Bill is equal to
FixedReset	Bid Price	Spread	0.00%	-0.50%	-1.00%
ENB.PR.B	18.04	240bp	17.00	16.49	15.98

Based on current market conditions, I suggest that the FloatingResets that will result from conversion are likely to be cheap and trading below the price of their FixedReset counterparts. Therefore, I recommend that holders of ENB.PR.B continue to hold the issue and not to convert. I will note that, given the apparent cheapness of the FloatingResets, it may be a good trade to swap the FixedReset for the FloatingReset in the market once both elements of each pair are trading and you can – presumably, according to this analysis – do it with a reasonably good take-out in price, rather than doing it through the company on a 1:1 basis. But that, of course, will depend on the prices at that time and your forecast for the path of policy rates over the next five years. There are no guarantees – my recommendation is based on the assumption that current market conditions with respect to the pairs will continue until the FloatingResets commence trading and that the relative pricing of the two new pairs will reflect these conditions.

Issue Comments

CU.PR.C: Convert or Hold?

It will be recalled that CU.PR.C will reset to 3.40% (paid on par) effective June 1.

Holders of CU.PR.C have the option to convert to FloatingResets, which will pay 3-month bills plus 240bp on the par value of $25.00, reset quarterly. The deadline for notifying the company of the intent to convert is 3 p.m. (Calgary time) / 5 p.m. (Toronto time) on May 17, 2017; but note that this is a company deadline and that brokers will generally set their deadlines a day or two in advance, so there’s not much time to lose if you’re planning to convert! However, if you miss the brokerage deadline they’ll probably do it on a ‘best efforts’ basis if you grovel in a sufficiently entertaining fashion. The ticker for the new FloatingReset, if it is issued, is not yet known.

CU.PR.C is a FixedReset, 4.00%+240, that commenced trading 2011-9-21 after being announced 2011-9-13.

The most logical way to analyze the question of whether or not to convert is through the theory of Preferred Pairs, for which a calculator is available. Briefly, a Strong Pair is defined as a pair of securities that can be interconverted in the future (e.g., CU.PR.C and the FloatingReset that will exist if enough holders convert). Since they will be interconvertible on this future date, it may be assumed that they will be priced identically on this date (if they aren’t then holders will simply convert en masse to the higher-priced issue). And since they will be priced identically on a given date in the future, any current difference in price must be offset by expectations of an equal and opposite value of dividends to be received in the interim. And since the dividend rate on one element of the pair is both fixed and known, the implied average rate of the other, floating rate, instrument can be determined. Finally, we say, we may compare these average rates and take a view regarding the actual future course of that rate relative to the implied rate, which will provide us with guidance on which element of the pair is likely to outperform the other until the next interconversion date, at which time the process will be repeated.

Click for Big

If we plug in the current bid price of the CU.PR.C FixedReset, we may construct the following table showing consistent prices for its soon-to-be-issued FloatingReset counterpart given a variety of Implied Breakeven yields consistent with issues currently trading:

Estimate of FloatingReset (received in exchange for CU.PR.C) Trading Price In Current Conditions
			Assumed FloatingReset Price if Implied Bill is equal to
FixedReset	Bid Price	Spread	0.00%	-0.50%	-1.00%
CU.PR.C	21.59	240bp	21.06	20.54	20.01

Based on current market conditions, I suggest that the FloatingResets that will result from conversion are likely to be cheap and trading below the price of their FixedReset counterparts. Therefore, I recommend that holders of CU.PR.C continue to hold the issue and not to convert. I will note that, given the apparent cheapness of the FloatingResets, it may be a good trade to swap the FixedReset for the FloatingReset in the market once both elements of each pair are trading and you can – presumably, according to this analysis – do it with a reasonably good take-out in price, rather than doing it through the company on a 1:1 basis. But that, of course, will depend on the prices at that time and your forecast for the path of policy rates over the next five years. There are no guarantees – my recommendation is based on the assumption that current market conditions with respect to the pairs will continue until the FloatingResets commence trading and that the relative pricing of the two new pairs will reflect these conditions.

Better Communication, Please!

ENB.PR.B To Reset At 3.415%

Due to total lack of communication from Enbridge, it was necessary for me to write an eMail:

Subject: ENB.PR.B

I understand that this issue will reset on June 1, 2017.

What will be the dividend reset rate? Where may I find a copy of the news release?

Sincerely,

Enbridge’s Investor Relations department replied (emphasis added):

Thank you for your email and interest in Enbridge.

We are rolling both the Series B (ENB.PR.B) and Series J (ENB.PR.U) preferred shares.

The deadline for the registered shareholder, CDS & Co., to provide notice of exercise of the right to convert Series B Preference Shares into Series C Preference Shares is 5:00 p.m. (Toronto time) on May 17, 2017.
The annual dividend rate applicable to the Series B (ENB.PR.B) Preference Shares for the five-year period from and including June 1, 2017 to but excluding June 1, 2022 will be 3.415%, being equal to the 5-year Government of Canada bond yield determined as of May 2, 2017, plus 2.40%, as determined in accordance with the terms of the Series B Preference Shares.

The dividend rate applicable to the Series C Preference Shares for the 3-month floating rate period from and including June 1, 2017 to but excluding September 1, 2017 will be 0.744% (2.950% on an annualized basis), being equal to the sum of the three month Government of Canada treasury bills, plus 2.40%, on an actual/366 day count basis, as determined in accordance with the terms of the Series C Preference Shares (the “Floating Quarterly Dividend Rate”). The Floating Quarterly Dividend Rate will be reset every quarter and registered holders will be provided with notice thereof.

The deadline for the registered shareholder, CDS & Co., to provide notice of exercise of the right to convert Series J Preference Shares into Series K Preference Shares is 5:00 p.m. (Toronto time) on May 17, 2017.

The annual dividend rate applicable to the Series J Preference Shares (ENB.PR.U) for the five-year period from and including June 1, 2017 to but excluding June 1, 2022 will be 4.887%, being equal to the 5-year United States treasury bond yield determined as of May 2, 2017, plus 3.05%, as determined in accordance with the terms of the Series J Preference Shares.

The dividend rate applicable to the Series K Preference Shares for the 3-month floating rate period from and including June 1, 2017 to but excluding September 1, 2017 will be 0.978% (3.880% on an annualized basis), being equal to the sum of the three month United States Government treasury bills, plus 3.05%, on an actual/366 day count basis, as determined in accordance with the terms of the Series K Preference Shares (the “Floating Quarterly Dividend Rate”). The Floating Quarterly Dividend Rate will be reset every quarter and registered holders will be provided with notice thereof.

On May 4th, 2017 a notification was sent out by the CDS (Clearing and Depository Services Inc.) to brokerage firms for both the Series B (ENB.PR.B) and Series J (ENB.PR.U) via email, bulletin link or swift notification which outlined the reset terms of these preferred series.

Under the terms of the prospectus, we fulfilled our obligation to notify CDS at which point the information is distributed to participants. The CDS notification included the fixed and floating reset rates.

Kind Regards,

Note that the deadline to advise the company if you wish to convert holdings of ENB.PR.B is 5:00 p.m. (Toronto time) on May 17, 2017..

I will have post a recommendation regarding such a conversion on Friday May 12.

I consider it an absolute disgrace that Enbridge holds its preferred shareholders in such disdain that it refuses to issue a press release to advise them of the rate and deadlines. Virtually every other company with FixedResets outstanding does so as a matter of course.

HIMIPref™ Preferred Indices These values reflect the December 2008 revision of the HIMIPref™ Indices Values are provisional and are finalized monthly
Index	Mean Current Yield (at bid)	Median YTW	Median Average Trading Value	Median Mod Dur (YTW)	Issues	Day’s Perf.	Index Value
Ratchet	0.00 %	0.00 %	0	0.00	0	-1.1253 %	2,162.6
FixedFloater	0.00 %	0.00 %	0	0.00	0	-1.1253 %	3,968.3
Floater	3.53 %	3.69 %	57,519	18.04	4	-1.1253 %	2,286.9
OpRet	0.00 %	0.00 %	0	0.00	0	-0.1408 %	3,025.7
SplitShare	4.70 %	4.56 %	66,208	3.94	5	-0.1408 %	3,613.4
Interest-Bearing	0.00 %	0.00 %	0	0.00	0	-0.1408 %	2,819.3
Perpetual-Premium	5.32 %	-0.80 %	70,638	0.09	22	-0.2024 %	2,780.4
Perpetual-Discount	5.08 %	5.12 %	105,136	15.24	14	-0.0060 %	3,009.6
FixedReset	4.46 %	4.06 %	208,880	6.59	94	-0.0443 %	2,327.5
Deemed-Retractible	4.99 %	4.85 %	139,580	0.11	30	-0.0163 %	2,888.5
FloatingReset	2.49 %	3.06 %	49,497	4.45	10	0.2280 %	2,540.2

Performance Highlights
Issue	Index	Change	Notes
BAM.PR.C	Floater	-2.44 %	YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-05-16 Maturity Price : 12.78 Evaluated at bid price : 12.78 Bid-YTW : 3.73 %
HSE.PR.A	FixedReset	-1.60 %	YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-05-16 Maturity Price : 15.94 Evaluated at bid price : 15.94 Bid-YTW : 4.23 %
IAG.PR.A	Deemed-Retractible	-1.50 %	YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 23.00 Bid-YTW : 6.04 %
BAM.PR.B	Floater	-1.45 %	YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-05-16 Maturity Price : 12.91 Evaluated at bid price : 12.91 Bid-YTW : 3.69 %
POW.PR.D	Perpetual-Discount	-1.32 %	YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-05-16 Maturity Price : 24.29 Evaluated at bid price : 24.60 Bid-YTW : 5.12 %
TRP.PR.D	FixedReset	-1.27 %	YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-05-16 Maturity Price : 20.92 Evaluated at bid price : 20.92 Bid-YTW : 4.14 %
TRP.PR.E	FixedReset	-1.03 %	YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-05-16 Maturity Price : 21.23 Evaluated at bid price : 21.23 Bid-YTW : 4.11 %
ELF.PR.G	Perpetual-Discount	1.01 %	YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-05-16 Maturity Price : 22.70 Evaluated at bid price : 22.94 Bid-YTW : 5.22 %
TRP.PR.B	FixedReset	1.17 %	YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-05-16 Maturity Price : 14.65 Evaluated at bid price : 14.65 Bid-YTW : 3.90 %
TRP.PR.H	FloatingReset	1.75 %	YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-05-16 Maturity Price : 13.98 Evaluated at bid price : 13.98 Bid-YTW : 3.26 %

Volume Highlights
Issue	Index	Shares Traded	Notes
HSE.PR.G	FixedReset	157,298	YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-05-16 Maturity Price : 22.91 Evaluated at bid price : 23.91 Bid-YTW : 4.74 %
BMO.PR.C	FixedReset	153,374	YTW SCENARIO Maturity Type : Call Maturity Date : 2022-05-25 Maturity Price : 25.00 Evaluated at bid price : 25.72 Bid-YTW : 4.06 %
BMO.PR.K	Deemed-Retractible	117,635	YTW SCENARIO Maturity Type : Call Maturity Date : 2017-06-15 Maturity Price : 25.00 Evaluated at bid price : 24.99 Bid-YTW : 4.20 %
BAM.PR.M	Perpetual-Discount	63,599	YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-05-16 Maturity Price : 22.93 Evaluated at bid price : 23.21 Bid-YTW : 5.17 %
RY.PR.D	Deemed-Retractible	57,762	YTW SCENARIO Maturity Type : Call Maturity Date : 2017-06-15 Maturity Price : 25.00 Evaluated at bid price : 25.21 Bid-YTW : -6.77 %
TD.PF.G	FixedReset	56,630	YTW SCENARIO Maturity Type : Call Maturity Date : 2021-04-30 Maturity Price : 25.00 Evaluated at bid price : 27.01 Bid-YTW : 3.40 %
There were 24 other index-included issues trading in excess of 10,000 shares.

Wide Spread Highlights
Issue	Index	Quote Data and Yield Notes
IAG.PR.A	Deemed-Retractible	Quote: 23.00 – 23.49 Spot Rate : 0.4900 Average : 0.3374 YTW SCENARIO Maturity Type : Hard Maturity Maturity Date : 2025-01-31 Maturity Price : 25.00 Evaluated at bid price : 23.00 Bid-YTW : 6.04 %
POW.PR.D	Perpetual-Discount	Quote: 24.60 – 25.05 Spot Rate : 0.4500 Average : 0.3177 YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-05-16 Maturity Price : 24.29 Evaluated at bid price : 24.60 Bid-YTW : 5.12 %
BAM.PR.C	Floater	Quote: 12.78 – 13.14 Spot Rate : 0.3600 Average : 0.2681 YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-05-16 Maturity Price : 12.78 Evaluated at bid price : 12.78 Bid-YTW : 3.73 %
TRP.PR.A	FixedReset	Quote: 18.91 – 19.20 Spot Rate : 0.2900 Average : 0.2038 YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-05-16 Maturity Price : 18.91 Evaluated at bid price : 18.91 Bid-YTW : 3.97 %
EML.PR.A	FixedReset	Quote: 26.40 – 26.69 Spot Rate : 0.2900 Average : 0.2151 YTW SCENARIO Maturity Type : Call Maturity Date : 2021-04-17 Maturity Price : 25.00 Evaluated at bid price : 26.40 Bid-YTW : 4.34 %
BAM.PF.D	Perpetual-Discount	Quote: 23.76 – 24.09 Spot Rate : 0.3300 Average : 0.2645 YTW SCENARIO Maturity Type : Limit Maturity Maturity Date : 2047-05-16 Maturity Price : 23.32 Evaluated at bid price : 23.76 Bid-YTW : 5.21 %

HIMIPref™ Preferred Indices These values reflect the December 2008 revision of the HIMIPref™ Indices Values are provisional and are finalized monthly
Index	Mean Current Yield (at bid)	Median YTW	Median Average Trading Value	Median Mod Dur (YTW)	Issues	Day’s Perf.	Index Value
Ratchet	0.00 %	0.00 %	0	0.00	0	0.6685 %	2,187.2
FixedFloater	0.00 %	0.00 %	0	0.00	0	0.6685 %	4,013.4
Floater	3.49 %	3.64 %	53,228	18.17	4	0.6685 %	2,313.0
OpRet	0.00 %	0.00 %	0	0.00	0	0.1253 %	3,030.0
SplitShare	4.69 %	4.49 %	66,554	3.94	5	0.1253 %	3,618.5
Interest-Bearing	0.00 %	0.00 %	0	0.00	0	0.1253 %	2,823.3
Perpetual-Premium	5.31 %	-1.92 %	69,838	0.09	22	-0.0763 %	2,786.0
Perpetual-Discount	5.08 %	5.06 %	104,967	15.31	14	-0.1285 %	3,009.8
FixedReset	4.45 %	4.04 %	211,078	6.60	94	-0.1310 %	2,328.5
Deemed-Retractible	4.99 %	4.76 %	132,137	0.11	30	-0.0095 %	2,888.9
FloatingReset	2.50 %	3.11 %	48,509	4.46	10	0.0279 %	2,534.4

PrefBlog

PWF.PR.Z Firm On Good Volume

New Issue: ECN FixedReset 6.25%+519M625

May 16, 2017

May 15, 2017

May PrefLetter Released!

BNS.PR.O Redeemed

New Issue: IFC Straight Perpetual 5.20%

ENB.PR.B : Convert or Hold?

CU.PR.C: Convert or Hold?

ENB.PR.B To Reset At 3.415%

Archives

Of Interest